When demand is high, professional brokers filter out suitable prospective buyers and clarify, for example, whether the property fits within the buyer's budget before arranging a viewing.
Young families and the adventure of building a house – how the dream of happiness comes true
Are you expecting a baby? Congratulations! Then you know that new parents face major challenges that affect not only parenting and childcare, but also their living situation. Many are faced with the question: Should we build a house or buy one? Which neighborhood is best for us? What financing options are available to us?
The future begins with three questions
The decision to start a family is one that will shape the lives of everyone involved. This makes it all the more important to create the right conditions for everyone to enjoy a comfortable life. If you have decided that you can no longer stay in your current home with your children, you should first ask yourself the following three questions and answer them honestly:
- What is our budget/what financing options do we have?
- Are we building a new home or buying an existing one?
- Are we moving to the city or the countryside?
We are happy to assist you with these important decisions—whether you are buying or building a house or need a financing concept, we will support you with our expertise to create the best possible future for you and your family.
What you need to know about the Baukindergeld child allowance
The exact implementation of the Baukindergeld (child benefit for home buyers) has been discussed for a long time, but it has finally been introduced. But who is eligible for this benefit and when do the relevant applications have to be submitted? We answer the most important questions.
Who is eligible for funding?
The Baukindergeld is intended to help families finance their own homes. To be eligible, at least one child must be living in the household at the time of application and must not yet have reached the age of 18. The applicant must be the owner or co-owner of the newly acquired property and receive child benefit. The period in which the home was purchased is also decisive for eligibility for the subsidy. The purchase contract or building permit must have been signed between January 1, 2018, and December 31, 2020.
Who is not eligible for funding?
The Baukindergeld is primarily intended to support families with lower incomes. For this reason, there is an income limit of €75,000 for one child, which increases by €15,000 for each additional child. In addition, applicants must not own any other real estate at the time of application and must use the property themselves for at least 10 years. There is no restriction on living space, which was discussed at one point.
How much funding is available?
How much a family ultimately receives depends on the number of children in the household. Each child receives €1,200 per year spread over ten years. This means that a total of €12,000 per child is subsidized. That may not sound like much at first, but it is helpful in paying off the interest. There is no maximum subsidy amount per family. The money is paid out annually on the same day.
When and where must the application be submitted?
The Baukindergeld subsidy can be applied for via the subsidy portal of the Kreditanstalt für Wiederaufbau (KfW). Families have three months after moving in to apply. This does not apply to applications submitted retroactively. Anyone who moved into their new home before the deadline of September 18 this year has until December 31, 2018, to apply for the subsidy. Applications can be submitted until December 31, 2018. After submitting their application, families have another three months to submit the necessary documents. These include income statements for the last two years, a registration certificate, and an extract from the land register.
What are the benefits of the child allowance for young families?
The Baukindergeld (child benefit for home buyers) is currently a hot topic in the media. However, the debate mainly focuses on unresolved issues surrounding its implementation. The positive effects that the Baukindergeld could have are becoming increasingly irrelevant. Depending on where you live, this benefit could reduce the cost of financing your own home by up to 63 percent, as the study shows.
The CRES study was based on average income figures for families in five selected German cities (Berlin, Hamburg, Leipzig, Nuremberg, and Krefeld). Location-specific real estate prices were included in the calculation in order to determine regional relief effects. The number of children and the amount of living space required depending on the number of children were also important factors in the calculation.
The relief in relatively affordable locations such as Krefeld city center is correspondingly much higher than in expensive locations such as the central districts of Hamburg or Berlin. In these cities, families can achieve greater relief if they are willing to accept longer commutes to the center and purchase residential property in affordable outlying areas. The relief also depends on the number of children in a family. Families with several children generally receive greater relief than families with only one child. Here, the burden averages between 2.2 and 7.7 percent, with this figure multiplying with each additional child. This is also due to the fact that families with several children are usually more heavily burdened financially by the purchase of a house. After all, they need more living space and therefore have to invest a larger proportion of their income in the purchase of real estate.
The study shows that many families are already benefiting greatly from the child allowance for home buyers.
However, IVD President Jürgen Michael Schick also addressed the issues that still need to be clarified with regard to the child allowance for home buyers in a statement on the study. This is because the child allowance for home buyers, which amounts to €12,000 per child, only helps families who could already afford to buy their own home.
Low-income families in metropolitan areas will still not be able to afford home ownership even with this level of support. Single parents in particular therefore benefit very little from the child allowance for home buyers. Only 10 percent of families in this group have the necessary equity to afford a property. He also criticized the time limit for applications. Currently, applications can be submitted retroactively from January 1, 2018, until December 31, 2020. According to the study's calculations, this reduces the maximum reach to 600,000 applicant families. The real estate association is therefore hoping for further improvements to the draft law.
Would you like to realize your dream of owning your own home and still have questions about the Baukindergeld subsidy? Contact us now. We will be happy to advise you.
This location is perfect for you
As a parent, especially with small children, you want a good neighborhood where your children can grow up safely. A "good neighborhood" can mean anything, depending on what your priorities are. After all, it's not just the children who should feel comfortable; mom and dad also have expectations of their new living environment: short distances to work, plenty of recreational space, etc. This raises the question of all questions:
City or country?
City
- Good connections/infrastructure
- Short distances to work
- Choice of educational institutions
- Little living space, high prices
- Various types of housing
Country
- Back to nature
- High recreational and leisure value
- Little traffic, quiet
- Community life, "everyone knows each other"
- Cheaper than in the city
The dream of owning your own home
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Living in old age
Living in old age or age-appropriate living!
As we get older, our expectations of our homes change. While a large garden and enough bedrooms for the kids were important to you at 30, at 70 you're probably more interested in having fewer stairs to climb and a supermarket just around the corner. But what else needs to be considered when it comes to age-appropriate living?
Real estate in divorce
What to do when paths diverge?
When couples divorce and own property together, the big question arises: What happens to it now? The answer is not always straightforward and depends on many factors. Does the couple have children, does one partner want to continue living in the property, and what share of the property does each partner own?
Inheritance and bequests
A dispute over a single cup? Real estate as inheritance
Almost every second inheritance in Germany includes real estate. The inherited home is often the deciding factor in whether an inheritance is valuable or not. So, in theory, anyone who inherits real estate has something to be happy about. In practice, however, inheritance is usually accompanied by grief for a loved one—and a lot of unanswered questions and bureaucratic hassle. Here's what you need to know if you inherit or bequeath real estate.
Moving due to a job change
New job, new city, new house? Moving house made easy
Property owners who have to move to another city due to a change in their career usually experience a great deal of stress. What happens to the old property and how can a new home be found quickly near the future place of work? A local real estate expert is best placed to help in such cases. With a professional real estate agent, you can usually submit a search request and will be informed exclusively when suitable properties come up for sale.
Living in old age
Move to a smaller place or stay where you are?
You don't transplant an old tree. Or do you? Many years ago, you fulfilled your dream of owning your own home with a large garden and a separate room for each child. At the time, the property was perfectly suited to your needs—but today, things look different. So what happens now with a house that is perhaps too big? Stay where you are? Sell? Or would you rather rent it out? Here, we show you what options are available to you.
Living in old age
Alternative forms of living in old age
The idea of moving into a retirement home discourages many seniors from looking into the topic of living in old age. However, assisted living does not always mean a nursing home, and not every nursing home means giving up all your freedom. Those who want to trade their home and solitude for an alternative form of living in their old age have various options.